Minnesota SF 479: Distribution modification of proceeds from the sales tax on vehicle repair and replacement parts

Status: Referred to Transportation (as of 2025-01-21)
State: Minnesota · Session: 2025-2026 · Bill: SF 479
Subjects: Motor Vehicles-Registration, Licensing, and Taxation, Taxation, Transportation and Transportation Department
Sponsors: Jasinski, Dibble, Howe, Johnson Stewart
Bill Text

1.1 A bill for an act
1.2 relating to transportation; modifying distribution of proceeds from the sales tax
1.3 on vehicle repair and replacement parts; amending Minnesota Statutes 2024, section
1.4 297A.94.
1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 297A.94, is amended to read:
1.7 297A.94 DEPOSIT OF REVENUES.
1.8 (a) Except as provided in this section, the commissioner shall deposit the revenues,
1.9 including interest and penalties, derived from the taxes imposed by this chapter in the state
1.10 treasury and credit them to the general fund.
1.11 (b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
1.12 account in the special revenue fund if:
1.13 (1) the taxes are derived from sales and use of property and services purchased for the
1.14 construction and operation of an agricultural resource project; and
1.15 (2) the purchase was made on or after the date on which a conditional commitment was
1.16 made for a loan guaranty for the project under section 41A.04, subdivision 3.
1.17 The commissioner of management and budget shall certify to the commissioner the date on
1.18 which the project received the conditional commitment. The amount deposited in the loan
1.19 guaranty account must be reduced by any refunds and by the costs incurred by the Department
1.20 of Revenue to administer and enforce the assessment and collection of the taxes.
1Section 1.
25-01931 as introduced01/13/25 REVISOR KRB/LJ
SENATE
STATE OF MINNESOTA
S.F. No. 479NINETY-FOURTH SESSION
(SENATE AUTHORS: JASINSKI, Dibble, Howe and Johnson Stewart)
OFFICIAL STATUSD-PGDATE
Introduction and first reading14201/21/2025
Referred to Transportation

2.1 (c) The commissioner shall deposit the revenues, including interest and penalties, derived
2.2 from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
2.3 paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
2.4 (1) first to the general obligation special tax bond debt service account in each fiscal
2.5 year the amount required by section 16A.661, subdivision 3, paragraph (b); and
2.6 (2) after the requirements of clause (1) have been met, the balance to the general fund.
2.7 (d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
2.8 in the state treasury the revenues collected under section 297A.64, subdivision 1, including
2.9 interest and penalties and minus refunds, and credit them to the highway user tax distribution
2.10 fund.
2.11 (e) The commissioner shall deposit the revenues, including interest and penalties,
2.12 collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
2.13 general fund. By July 15 of each year the commissioner shall transfer to the highway user
2.14 tax distribution fund an amount equal to the excess fees collected under section 297A.64,
2.15 subdivision 5, for the previous calendar year.
2.16 (f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
2.17 of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
2.18 credit to the highway user tax distribution fund an amount equal to the estimated revenues
2.19 derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
2.20 rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
2.21 commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
2.22 based on the amount of revenue deposited under paragraph (d).
2.23 (g) The commissioner must deposit the revenues derived from the taxes imposed under
2.24 section 297A.62, subdivision 1, on the sale and purchase of motor vehicle repair and
2.25 replacement parts in the state treasury and credit:
2.26 (1) 43.5 percent in each fiscal year to the highway user tax distribution fund;
2.27 (2) a percentage to the transportation advancement account under section 174.49 as
2.28 follows:
2.29 (i) 3.5 percent in fiscal year 2024;
2.30 (ii) 4.5 percent in fiscal year 2025;
2.31 (iii) 5.5 percent in fiscal year 2026;
2.32 (iv) 7.5 7.6 percent in fiscal year 2027;
2Section 1.
25-01931 as introduced01/13/25 REVISOR KRB/LJ

3.1 (v) 14.5 14.75 percent in fiscal year 2028;
3.2 (vi) 21.5 22 percent in fiscal year 2029; and
3.3 (vii) 28.5 56.5 percent in fiscal year 2030 and thereafter; and
3.4 (viii) 36.5 percent in fiscal year 2031;
3.5 (ix) 44.5 percent in fiscal year 2032; and
3.6 (x) 56.5 percent in fiscal year 2033 and thereafter; and
3.7 (3) the remainder in each fiscal year to the general fund.
3.8 For purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01,
3.9 subdivision 11, and "motor vehicle repair and replacement parts" includes (i) all parts, tires,
3.10 accessories, and equipm
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